U.S. Energy Corp. (USEG)

[LouisDesyjr]

Shelf financing may not help

The $100 million in shelf financing may not help. Who would want to invest in a company that can not even run a positive gross margin? Anyone who puts up $100 million for a company that is on track to lose money every quarter would have to be out of their mind.

Think of it this way, if someone had $100 million they could either:

1: Buy 10 year US treasury bonds that yields 2.4% and get $2.4 million every year with no worry, plus get the $100 million back in ten years.

OR

2: Invest it in USEG for the right to have a piece of $12 million in losses per year, and run the risk that all of the money will be spent within a decade with nothing to show for it.

I expect that they will have to sell off land. No one is going to let them run $100 million of their money into the ground.

Louis J. Desy Jr.